This is an archived release.
Low electricity production in December
Reduced consumption in power-intensive manufacturing, low reservoir level and anticipation of higher prices contributed to low electricity production in December 2002. The production decreased by 12.7 per cent compared with December 2001
The production in December was 11 943 GWh, which is 818 GWh below average production in the last 5 years. From 2 December to 29 December the trickle was 1.7 TWh. Average trickle for the same period based on time series 1990-2002 is 4.1TWh. At the beginning of December the reservoir level was 60.6 per cent and at the end of the month 49.1 per cent. Medians for the beginning and the end of December were 81.3 and 73.6 per cent respectively. Average forward prices, for 6 and 10 weeks further on, were higher than the observed spot prices in December. Higher term prices than spot prices show an expectation of increase in the value of the water. Low production may have been a result of this situation.
In December imports were 1 033 GWh and exports 587 GWh. The energy went from North Norway to Sweden and from South Sweden to Eastern Norway. This can be related to the transmission capacity between North Norway and Eastern Norway.
Less consumption in power-intensive manufacturing
Compared with the corresponding month in 2001 the consumption in power-intensive industry decreased by 11.9 per cent in December. The total consumption in power-intensive manufacturing for the whole year decreased by 7.8 per cent compared with last year. Lower activities in this sector have caused this decrease.
Total gross consumption this month was 12 389 GWh, which is a 2.8 per cent decrease from the corresponding month in 2001. The average temperature for most of the country was this month below normal. The total gross consumption - with the exception of power-intensive manufacturing, which is determined by temperature - was 9 979 GWh in December 2002 against 10 007 GWh in December 2001. Extensive attention around the situation in the electricity market, high prices and increase in the sale of light heating oil may have reduced the demand. 133 million litres light heating oil were sold in December, which is equivalent to 1.3 TWh. The average sale of light heating oil has been 90 million litres for the last 5 years, which is equivalent to 0.9 TWh. The difference of 0.4 TWh is equivalent to 3.3 per cent of the total consumption in December.
Strong increase in prices
The average price in the spot market in December 2002 was NOK 0.54/KWh against NOK 0.19/KWh in December 2001. The price increased by 71.8 per cent from November to December.